24

Consider a project with the net cash flows shown below. The cost of capital for the project is 9.5%.

• Year 0:($81,570)
• Years 1-6$12,950 per year
• Years 7-10$15,450 per year

What is the internal rate of return (IRR) for the project?

Select one:

a. 7.85%

b. 10.67%

c. 12.49%

d. 16.52%